A crypto strategist who has accurately identified Bitcoin (BTC)’s pre-halving correction believes that Layer 1 projects are ready to trigger a breakout rally.
Rekt Capital, an anonymous analyst, told his 499,300 followers on social media platform X that Injective (INJ) appears to be forming a large falling wedge structure on the weekly chart.
A falling wedge pattern is generally considered a bullish reversal signal, as it indicates that sellers are losing momentum while buyers are stepping in to slow the price decline.
Rekt says:
“Injective has been developing this channel for several months.
A weekly close above the bright blue diagonal resistance line could signal the start of a new uptrend.
INJ coils as close to the apex of this structure as possible to prepare for a breakout.”
As of this writing, INJ is trading at $18.63, down more than 5% over the past day.
Looking at the top Mimecoin, Dogecoin, the analyst believes that DOGE is still in the process of turning its long-term diagonal resistance line into support.
“DOGE has been experiencing a retest of the downtrend breakout since it broke out of the macro downtrend (blue).
A successful retest would confirm a new macro uptrend.”
At the time of writing, DOGE was valued at $0.101, down more than 4% on the day.
Rekt believes that altcoins are ready for a new uptrend in relation to the broader altcoin market.
“The amount of bullish divergence occurring across many altcoins lends credence to the belief that the altcoin market could be on the cusp of something special.
But special things take time.”
A bullish divergence is a reversal signal that suggests that an asset is gaining momentum even though it is trading lower or sideways.
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